While the consumer tech industry “condemns the use of forced labor” and “unequivocally supports” the Biden administration’s efforts “to end this scourge around the world,” there are concerns with the timing of new requirements, the Consumer Technology Association commented in docket DHS-2022-0001. The comments were due March 10 in response to a January DHS notice on how best to comply with the Uyghur Forced Labor Prevention Act (UFLPA) by preventing goods produced with forced labor in China from being imported into the U.S.
Sheffield Hallam University professor of human rights and contemporary slavery Laura Murphy said CBP needs much more funding to enforce the Uyghur Forced Labor Prevention Act, because she does not think companies will cut their ties immediately to China's Xinjiang province as a result of the new law. Murphy, who was interviewed by Hudson Institute senior fellow Nury Turkel on March 9, said she has not yet found a company with production in Xinjiang that can provide clear evidence that it does not employ Uyghur workers who were coerced into taking their jobs.
CBP should take an approach to implementing the Uyghur Forced Labor Prevention Act that is different than the current withhold release order regime, the American Association of Exporters and Importers said in comments to DHS. "The solution to forced labor does not lie with seizing goods at time of arrival," the trade group said. "Rather, it lies in timely information about suspected problem parties being shared at the time they are reliably identified."
CBP is working on some new guidance for the withhold release order aimed at silica-based products from Hoshine Silicon Industry in Xinjiang, China (see 2108030026), said Eric Choy, acting executive director of the Trade Remedy Law Enforcement Directorate. Choy and other agency officials spoke on a March 4 webinar that was later posted to the Solar Energy Industries Association website. "We are working through our own administrative procedures here right now to make sure it meets the administrative requirements" to post on the agency's site, he said.
China's lack of worker rights, weak environmental standards "and anticompetitive subsidies are the hallmarks of China’s artificial comparative advantage. It is an advantage that puts others out of business and violates any notion of fair competition," the annual trade policy agenda from the Office of the U.S. Trade Representative said, and the administration is looking to advance fair competition "through all available avenues," including coordinating with other countries, using existing trade agreements, or new tools, it said.
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Arent Fox lawyers said a disclosure bill aimed at large fashion retailers and manufacturers may not pass in the New York statehouse, but it's making lots of people in the industry nervous (see 2201200046). "Even if this bill doesn't pass, there's going to be others in the future," Angela Santos said.
The two top issues Thomas Overacker, CBP's executive director of cargo and conveyance security, has been dealing with are the blockades at the Canadian border and the Uyghur Forced Labor Prevention Act. He told an audience at the National Association of Foreign-Trade Zones' legislative conference that CBP is going to have a challenge identifying what goods come from the Xinjiang region, given the number of middle men in China, issuing invoices or acting as freight forwarders. "It’s not always evident from the data we collect at CBP … where the goods were actually produced," he said Feb. 15.
A bipartisan bill that would require businesses with more than $500 million in gross annual receipts to conduct annual audits to investigate whether there is forced labor among their suppliers or secondary suppliers has been introduced again. Ted Murphy, a trade lawyer at Sidley Austin, wrote that while the Slave-Free Business Certification Act of 2022 has bipartisan sponsorship, from Sen. Josh Hawley, R-Mo., and Sen. Kirsten Gillibrand, D-N.Y., "it is not clear whether this bill has much chance of becoming law (a previous version of the bill was introduced in 2020, but did not advance out of committee)."
Members of the Congressional-Executive Commission on China are asking appropriators in the House and Senate to dedicate more than the $9 million or $10 million currently slated to strengthen CBP enforcement of the ban on imports of goods made with forced labor. "Given the subsequent enactment of the Uyghur Forced Labor Prevention Act and the request by the Biden Administration for additional resources to implement it, we respectfully request that the conference report on the FY2022 bill include an even greater amount for forced labor enforcement," they wrote Feb. 2. Congress has not yet passed bills to fund the government for the fiscal year that began Oct. 1, 2021, but appropriators are trying to reach agreement by Feb. 18 on the rest of the fiscal year's funding levels.